National Hire Group director and major shareholder Dale Elphinstone has urged stock owners to reject Seven Group Holdings’ $3.00 per share takeover offer.
In a target’s statement released today, National Hire’s Inedependent Board Committee said it believed the offer was less than the full underlying value of the company’s shares and less than the lower end of the value range determined by an independent expert.
The committee said shareholders should only accept the offer if they are likely to want to sell their shares in the foreseeable future.
National Hire director Dale Elphinstone said he intended to reject to offer, on the basis of the committee’s recommendations.
Seven Group Holdings holds a 66.2 per cent stake in the hire services firm, and launched the off-market takeover bid last month to address the low liquidity of its shares on the Australian Securities Exchange.
At close of trade today National Hire’s stock was up 1.2 per cent, to $3.37.
